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M05 Insurance Law > Chapter 3 - Law Of Contract > Flashcards

Chapter 3 - Law Of Contract Flashcards

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1
Q

What is this an example of where there must be at least two persons to make a contract but only one of them is legally bound

A

Unilateral contract

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2
Q

What is it an example of what each party makes a promise to the other and both are legally bound

A

Bilateral contract

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3
Q

Why can avoid contracts have no binding effect on either party

A

Because avoid contract is no contract at all

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4
Q

Why is a voidable contract binding

A

If one of the parties will have the right if they wish to set it aside

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5
Q

What are the Five essential for the formation of a valid contract

A 
Agreement
Intention to create legal relations
Consideration
Must be in the form required by law
Parties must have the capacity to contract
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6
Q

What is six ways made an offer to be made

A 
In writing
Orally 
By conduct 
To one person
To a group of people 
To the public
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7
Q

What happens is there is a true offer

A

The offeror intends to be immediately bound if that offer is accepted as it stands

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8
Q

As an offer cannot remain in open indefinitely what ways can it be ended

A 
A time limit or a reasonable time
Death
Acceptance 
Revocation 
Rejection/counter offer
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9
Q

What does it mean when it says acceptance must be unqualified

A

It must exactly match the terms of the offer

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10
Q

What are the five rolls of consideration

A 
Must be real
Mustn’t be adequate
Mustn’t be in the past
Must move from the promisee
Mustnt be something that the promisee is already bound to do
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11
Q

What six contracts must be in writing

A

Bills of exchange
Checks and promisSory notes
The transfer of shares in a registered company
Some consumer credit hire purchase transactions
Marine insurance contracts
Sale or other disposition of land

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12
Q

Under English law a minor is below the age of what

A

18

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13
Q

What three type of contracts are made by minors

A

Contracts which are binding (necessaries such as food and clothing)

Contracts which are binding unless they are repudiated

Contracts which are not binding on the minor (borrowing money, buying things that aren’t necessaries)

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14
Q

Are contracts made by patients with a mental health condition generally valid?

A

Yes

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15
Q

A patient with a mental health condition can:

A

Ratify a contract which previously did not bring them after they are cured

Must also pay a reasonable price for necessaries supplies to them

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16
Q

Can a drunken person avoid a contract?

A

Yes, only if they didn’t understand what they were doing and the other party knew of this

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17
Q

What is certainty of terms

A

The contract must be certain and no contract is formed if a vital term is missing or if the meaning of an essential term is uncertain

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18
Q

What are express terms

A

Words spoken by the parties or written down by them

Oral contracts sometimes present problems of proof but not when the contract is in writing

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19
Q

What three ways can implied terms be

A

In fact
By custom
By usage

20
Q

What are terms implied in fact

A

One which is not usually stated but is presumed to be intended by the parties

‘It goes without saying’

21
Q

What are terms implied in custom

A

Custom of the market in which the parties to the contract operate

22
Q

What are times implied in law

A

The rights and duties of the parties may be based in terms of the law automatically applies

23
Q

What does the Unfair Contract Terms Act apply to

A

Business to business contracts

24
Q

Under the unfair contract terms act what is negligence liability

A

Can’t exclude their liability for death or bodily injury arising from negligence

25
Q

Under Unfair Contract terms act what is contractual liability

A

Can’t exclude or restrict their liability for breach of contract, except for a requirement of reasonableness

26
Q

What is the sale of goods and hire purchase under the Unfair Contract Terms act

A

Implied terms cannot be excluded or restricted by a contract term

27
Q

What is the consumers rights act 2015

A

Consumer contracts

28
Q

Under consumer rights act is an unfair term contract or notice binding on the consumer

A

Not if it causes a Significant imbalance in the parties rights and obligations to detriment of the consumer

29
Q

What is the importance of a warranty

A

It affects only some relatively minor aspects of the agreement

30
Q

What happens if a warranty is broken under the general law of contract

A

Injured party has a right to claim damages or not to terminate the contract

31
Q

What is the general law of contract what is the importance of a condition

A

It relates to an important aspect to the agreement i.e. it goes to route

32
Q

Under the general law of contract what happens if the condition is broken

A

The big team has a right not only to claim damages but also to terminate the agreement

33
Q

What is an intermediate or innominate terms

A

What terms can’t be classified as either conditions or warranties in advance as it is only when the effect of breach are considered but the true nature of the term is revealed

34
Q

What are the five things defective contract may result from

A 
Illegality
Improper pressure
Mistake
Misrepresentation
Nondisclosure
35
Q

What five ways can a contract be discharged

A 
Performance 
Breach 
Frustration 
Agreement 
Operation of law
36
Q

What are the main remedies in the law of contract

A

Termination
An action for damages
An action for specific performance
An action for an injunction

37
Q

As in the law of torts, The main common law remedy for breach of contract is what

A

An award for damages that is an award of financial compensation to the claimant

38
Q

Like an action in thought and action for breach of contract if you do an action for what kind of damages

A

The liquidated damages were the amount to be awarded is fixed to by the court

39
Q

What is the privity of contract doctrine

A

Which restrict the right and duties created by a contract to the persons who originally made it

40
Q

What is the contract rights of third parties act

A

Provides that a third party can before leaving a contractual term if

A) the contract provides that they made do so

B) the contract purports to confer a benefit to the third party

41
Q

What is assignment

A

Where the original party to the contract may be able to assign their rights under the contract to another who stands in their place

42
Q

Under statutory assignment what three ways can you adding your debt

A

Absolute
In writing
Expressly made in writing to the debtor or the trustee

43
Q

What three types of assignment are relevant to insurance contracts

A

Assignment of the subject matter
Assignment of the benefit of the contract
Assignment of the contract itself

44
Q

If a policy is assigned where the property it covers is sold. Where must the assignment take place?

A

At the place of the sale

45
Q

Are life policies freely assignable

A

Yes

46
Q

Are marine insurance policies freely assignable

A

No

M05 Insurance Law (11 decks)

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